diff --git a/setup.py b/setup.py
--- a/setup.py
+++ b/setup.py
@@ -63,7 +63,7 @@ if sys.version_info < (2, 7):
     requirements.append("unittest2")
     requirements.append("argparse")
 
-requirements.append("mercurial>=2.8.2,<3.2")
+requirements.append("mercurial>=2.8.2,<3.4")
 if not is_windows:
     requirements.append("py-bcrypt>=0.3.0,<=0.4")